2. A system of recording information about a business.  Lucas Pacioli (1494)

3. 1 2 3 4 5

4. Accountant/bookkeeper… ◦ collects documentation ◦ records this information ◦ categorizes it ◦ presents it in specific formats  Bookkeepers - data collection & entry.  Accountants - preparing financial statements, advisory or consulting role.

7. a possession of a business that will bring the business benefits in the future. Asset: a possession of a business that will bring the business benefits in the future. Asset Test 1.DOES A BUSINESS OWN/CONTROL IT? 2.WILL IT BRING A BUSINESS BENEFITS IN THE FUTURE? 3.CAN YOU VALUE IT ACCURATELY?

10. a debt (money owed) of the business. Liability: a debt (money owed) of the business. Results in assets (usually cash) leaving the business in the future. Examples…Loan Creditors (payables)

12. the value of the business to the owner(s) Owner’s Equity: the value of the business to the owner(s) Owner’s Equity = value of all the assets –liabilities.